HomeMy WebLinkAboutFCS-17-186 - T17-120 Residential Tankless Water Heaters
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-11-06
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2017-10-17
REPORT NO.: FCS-17-186
SUBJECT:T17-120Residential Tankless Water Heaters
___________________________________________________________________________
RECOMMENDATION:
That Tender T17-120 Residential Tankless Water Heaters, be awarded to Rheem
Canada Ltd., Brampton, Ontario, at their tendered price of $56,250., plus H.S.T. of
$7,312.50, for a total of $63,562.50, for a one (1) year term, with an option to renew
for three (3) additional twelve (12) month periods.
BACKGROUND:
The rental water heater program was established in 1989 to ensure affordable hot water
service for Kitchener residents. The original program goals were to service Kitchener
residents’ hot water needs by delivering a program with economical rental rates and
great customer service. Kitchener Utilities offer a full range of water heaters with the
latest technologies including high efficiency Energy Star compliant water heaters.
In addition, the introduction of tankless technology coupled with customer requests for
compact water heaters has given rise to offer a tankless rental water heater solution to
the residents.
The average annual spend over the past three (3) years was $45,480. The actual spend
will depend on the level of activity throughout the term of the contract.
REPORT:
The value of this purchase falls below the Council approval threshold of the new
purchasing bylaw, however it is being brought forward because of the new Purchasing
Bylaw clause 170.20.7 - “Notwithstanding its repeal, any purchases begun but not yet
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completed by the effective date of this By-law shall be completed in accordance with the
terms of the previous Chapter 170 of The City of Kitchener Municipal Code as if it were
still in effect.”
Tenders were advertised publicly on the City of Kitchener website and the Internet
through the Ontario Public Buyers Electronic Tendering Information System. Documents
were downloaded by nine (9) interested parties and by the closing date of Thursday
October 12, 2017, two (2) tenders had been received.
The following tenders were received:
Bid Price
Rheem Canada Ltd Brampton ON $63,562.50 *
A.O. Smith Enterprises Ltd Guelph ON $67,800.00
The tender received from A.O. Smith Enterprises Ltd., was disqualified as incomplete.
The price for tankless water heaters has increased 8.7% from the 2014 submitted
tender.
The tenders were reviewed by B. Nash, Manager of Customer Relations and S. Rudak,
Buyer, who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
Water heaters are a capital asset and their installation/replacement is funded through
rental rates.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Michael Goldrup, Acting Deputy CAO, Finance and Corporate
Services
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